We are now more than halfway through the 60-day Regular Legislative Session. Many of the House Subcommittees and some Senate Committees have completed their work for the Session and will not meet again. Bills that have not been heard in at least one committee of reference are likely dead for the Session. Much of the Legislature’s focus for the remaining three weeks of Session will now be on the budget negotiations.
In Memorium of Congressman Alcee Hastings:
Congressman Alcee Hastings, who represented Florida’s 20th Congressional district, passed away on April 6th. Congressman Hastings previously served as a United States District Judge for the Southern District of Florida.
Executive Updates:
Alex Kelly, the current chief of staff to Education Commissioner Richard Corcoran, was named a Deputy Chief of Staff for Governor Ron DeSantis. He is expected to take on education and economic development policy.
Governor DeSantis Sues Federal Health Officials – On Thursday, Governor DeSeantis and Attorney General Ashley Moody filed a lawsuit against federal health officials for the continued restrictions on the cruise industry. Governor DeSantis argued the state is at risk of losing billions of dollars and tens of thousands of jobs. The lawsuit, filed in federal district court in Tampa, asks a federal judge to lift restrictions imposed by the federal Centers for Disease Control and Prevention that have been in place for more than a year due to the coronavirus pandemic.
Budget Watch:
On Tuesday, Florida economists added approximately $2 billion-plus to the state’s revenue forecast, due to consumer spending and corporate earnings that exceeded expectations in recent months. Economists expect almost $1.5 billion more than anticipated this year and another $550.8 million next year powered mainly by a spike in sales tax collections. The House and Senate each presented their initial appropriations bills on the Floor this week and this information will play an important role in the ongoing budget negotiations.
The Senate approved its initial $95 billion budget plan, which is a starting point for negotiations with the House, which is offering a $97 billion budget. Those negotiations will involve how to use the estimated $10 billion in anticipated federal stimulus money, along with the additional $2 billion coming in the new general revenue forecast for the state.
Legislative Updates:
Gaming Deal – Senate President Simpson released a memo to the Senate late Wednesday that details his vision for changing gaming regulations in Florida. President Simpson said the deal may or may not include a new agreement with the Seminole Tribe. Governor DeSantis has been in talks with the Tribe, hoping that a new Compact would mean additional revenue for the state. The three gaming bills will be heard in the Senate next Monday and will focus on matters unrelated to the Compact. Two key issues unrelated to the Compact are dealt with in SPB 7076, which would set up a five-member Gaming Control Commission, and SPB 7078, which would keep any criminal investigation regarding the newly formed Gaming Control Commission out of public records. The third bill, SPB 7080, focuses on the decoupling of greyhound racing, jai alai, and horse racing from state parimutuels.
Affordable Housing Funds – After negotiations between the Governor’s Office and Legislative leadership, the Florida House and Senate announced a plan to rework the infrastructure funding bill to leave a greater share of affordable housing funds following pushback from stakeholders. An amendment filed Monday afternoon to the Senate’s version of the deal (SB 2512) adds about $60 million to the funds initially allocated for affordable housing for the coming fiscal year.
Data Privacy – The Senate Rules Committee amended a bill, SB 1734 by Senator Bradley, dealing with what companies are permitted to do with consumer personal data. Intense lobbying from business advocates prompted the Senate committee members to remove a provision that would have allowed consumers to sue for the unauthorized collection and sale of their personal data. The provision remains in the House companion to the bill, HB 969 by Representative McFarland. The data privacy bills are a priority for Governor DeSantis and Speaker Sprowls.
Resilience and Sea Level Rise Bills Sent to the Governor – This week the House and Senate both voted unanimously to approve SB 1954, Statewide Flooding and Sea Level Rise Resilience. The legislation establishes The Resilient Florida Grant Program and requires the Florida Department of Environmental Protection to complete a comprehensive statewide flood vulnerability and sea level rise data set and assessment and to develop an annual Statewide Flooding and Sea Level Rise Resilience Plan. The legislation is now ready to go to Governor DeSantis. Another, more controversial, bills to be sent to Governor DeSantis areSB 2512, Documentary Stamp Tax Distributions and SB 2514, Resilient Florida Trust Fund. These two conforming bills establish a statewide plan to fund major infrastructure programs, and were previously announced by Senate President Simpson and House Speaker Sprowls. The three-part infrastructure plan revises the statutory distribution of documentary stamp proceeds to prioritize investing in state and local affordable housing programs, mitigating the impacts of sea level rise, and enhancing wastewater programs, including septic-to-sewer conversions.
Online Sales Tax – On Thursday the House passed SB 50 sponsored by Senator Gruters and Representative Clemons that will require online sellers to collect and remit Florida sales tax. This is estimated to bring $1 billion in revenues that will initially be used to replenish the state’s Unemployment Compensation Trust Fund. Before the pandemic, businesses paid $7 per employee, but this year the rate shot up to $49 and is expected to jump to $87. After the fund is replenished, the revenue would be used to make a major cut in a tax on commercial rent. Retailers that have a “physical presence” in Florida are already required to collect and remit taxes. Retailers without a presence aren’t required, but when they make a sale to Floridians, they are technically supposed to send in the taxes on their purchases and few retailers do. On March 29, the Senate voted 30-10 to approve an earlier version of the bill. The House and Senate leaders announced a compromise to reduce the commercial rent tax from 5.5 percent to 2 percent once the unemployment trust fund is replenished. This addition to the bill will require the bill to go back to the senate for a final vote.
Rural Broadband Expansion – HB 1293, which would expand rural broadband, by Rep. Tomkow passed a second House Committee Thursday. The bill passed Ways and Means Committee 15-1, despite criticism from the committee’s chairman and municipal utility companies.
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